Nazis get worse if you don't actively oppose them. That can look like punching them, but it can also look like actively ostracizing them by taking away their jobs, denying them participation in community events, or just straight up shaming them in public.
Pacifism only works if the other side isn't willing to kill you. These jackasses fantasize about genociding people as a hobby, so if you think pacifism is going to work for you then go right ahead but I'll be over here working on my defensive skills.
In many situations nazi-punching is not your best tactical decision, especially in the presence of cops. Using your words to hurt the poor Nazi snowflakes feelings works just as well and has the added benefit of potentially provoking them into getting themselves arrested if there are cops watching.
Oh, they totally do. That's why I'd suggest not punching a Nazi in front of the cops, even if they 100% deserved it. The cops will arrest you much quicker than they will a fascist even if you do the same exact thing.
And also definitely YMMV on whether this works at all, I'm in Massachusetts where the cops have to at least pretend they're doing their jobs so they will typically detain Nazis if they take an actual swing at someone. Other states this might not work at all.